Even though many Article 8 funds under the Sustainable Finance Disclosure Regulation don’t have buzzwords like ‘ESG’ in the names, their inclusion sends a stronger signal to investors.
Speaking to Citywire Selector Hortense Bioy, head of ESG research at Morningstar, said if a fund’s name doesn’t include ‘ESG’ or sustainability terms, these issues are unlikely to play a central role in the strategy.
‘I’m not saying that these funds do not consider ESG factors, many are now doing it. But these factors are, more often than not, non-binding.’
Also in this podcast Bioy discusses Morningstar’s decision to reduce the number of funds it deems sustainable, and what the invasion of Ukraine means for sustainable investments.
